LLC terminated 1st year of plan

[RobN]

I set up a DB Plan in 2006 for an LLC involving 2 principals only, with one minimally benefiting only to satisfy participation requirements. I had the 3 involved entities (the LLC and each principal's corporation) adopt the Plan.

I was just informed "their partnership was terminated in November".

The one principal wants to maintain the Plan while the other doesn't.

Am I stuck with keeping the minimally benefiting principal's benefit in the plan?

[SoCalActuary]

It would be sarcastic to ask how you intend to drop someone's accrued benefit.

But you could look to the vesting provision. What room do you have to drop someone with only one

year of vesting credit? Of course this fails if you granted vesting service from hire in the two corporations.